InstaForex

October 8, 2021

The NFP Will Be The Determinant Of Who Is More Powerful On The GBP/USD Chart

 Looking at the price chart of the GBP/USD pair, the price seems to have returned to display a climb to once again test the hard -to -break resistance level at 1.36400.


The upside starting in the European session and connecting to yesterday’s New York session has also produced a jump of over 60 pips before declining again at the end of the session.


The pound showed dominance in trading on Thursday following the intervention of Russian President Vladimir Putin who is considering helping in boosting gas supplies.


The increase in high gas prices is not at all beneficial to Russia and the deck as that aspect has seen a slight decline in gas prices in Europe to support the Pound.


Not to say much, the Pound continues to take room for more price control on the GBP/USD chart to make a jump in times of weakness that hit the USD.




The forthcoming United States (US) NFP employment data report will also be scrutinized by investors on whether or not it will trim the dominance displayed by the Pound or not.



If the price is driven by a positive NFP report, the price movement is likely to return past the resistance level of 1.36000 to test this week’s lows around 1.35450.


A lower decline breaking the lows is expected to push the price on the GBP/USD chart to re -hit the RBS (resistance become support) zone of 1.35000.


However, if the Pound is more dominant than the USD, it is likely that the price will react to try to break the resistance level of 1.36400 to head to a higher price level.


The ability to break the resistance level will drive the price movement back towards the SBR (support become resistance) zone of 1.37000 which is the zone of the beginning of the price plunge last week.